Summary
- The United States FCC has voted on a rule that would allow users to switch carriers after 60 days, increasing competition in the market.
- Details of the ruling are still unclear, but it could give users more flexibility while continuing to pay off their devices.
- A policy that requires devices to be eligible for unlocking so soon after purchase could disrupt the current carrier market that relies on financed phones to entice customers.
The flagship smartphone trend is up only, and no, I’m not talking about the features today’s phones offer or their over-the-top AI capabilities. I’m talking about price. And that’s not just the case with flagships; it also rings true when it comes to mid-rangers, and users are taking notice.
One way users offset the high cost of phones is by purchasing used devices, while others, who prefer new devices, rely on carriers. Carriers offer financing on new smartphones, which lets users spread out the cost of their brand-new flagship over the course of 24 or even 36 months. Pair that with the enticing bundles that carriers offer with the purchase of new phones, and you’ve got the perfect recipe for sticker shock down the road.
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What’s worse is that you’re essentially locked to the carrier for the duration of your contract, or until you pay off your shiny new phone. So, for instance, if you’re getting a great deal from a different carrier, you can’t migrate unless your contract has run out. The FCC, however, recently proposed a new rule that could make it easier for users to switch carriers, and the commission voted on it earlier today, July 19.
The Federal Communications Commission wants to give consumers the right to unlock their phone and have the option to switch carriers after 60 days of activation, regardless of an underlying contract or payment plan.
Uncertainty remains
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It is currently uncertain if the FCC voted in favor of approving the change. A statement on the National Telecommunications and Information Administration (NTIA) website only suggests that the FCC voted on the proposal. “Consumers should not be locked into a wireless network simply because of how they bought their phones. The ability of consumers to easily take their existing phone to a new network provider will result in greater competition in the wireless marketplace. That’s a win for everyone and I applaud the FCC for kicking off this important rulemaking,” said Alan Davidson, NTIA Administrator.
Details regarding the changes are likely still being ironed out. It is currently unclear if the ruling will be applicable to all existing contracts, or only to future contracts. It’s also worth noting that it is unclear what the rule might be for those financing a device. We’re speculating that users might be able to unlock their phone and migrate to a different carrier, but continue paying their phone’s monthly installment as per the agreement with the original carrier.
The FCC’s proposal is clearly a step towards boosting consumer choice and convenience, making it easier for users to migrate to the carrier of their choosing without confusing carrier unlocking stipulations. It should also encourage competition among service providers, forcing them to offer better deals and promotions in a bid to retain customers. It’s worth noting that the plan is currently in its Public Comment period, and specifics and the timeline for when the change might go into effect remain to be seen.
